Reveals The Economic Price Of IDR 18,150 For Solar And IDR 17,200 For Pertalite Per Liter, Pertamina's Boss: People Receive Subsidies Of IDR 13,000 And IDR 9,550 Per Liter

Pertamina President Director Nicke Widyawati. (Photo: ANTARA)

JAKARTA - Pertamina President Director, Nicke Widyawati, said the strengthening of crude oil prices due to declining global supply, especially from Libya and Ecuador, as well as the limited production capacity of OPEC+, had an impact on the economic prices of fuel oil (BBM) and LPG in Indonesia.

"If we look at the economic price with the increase in oil and gas prices, this has also increased sharply", said Pertamina President Director, Nicke Widyawati, in a Hearing Meeting (RDP) with Indonesian House of Representatives Commission VI in Jakarta, Wednesday, July 6.

Nicke detailed, based on the calculation formulation carried out by Pertamina in July 2022, the economic price of Solar is IDR 18,150 per liter, while the selling price is still IDR 5,150 per liter.

This condition makes the government have to pay a diesel subsidy of IDR 13,000 per liter.

Meanwhile, the economic price of Pertalite subsidized fuel is IDR 17,200 per liter. Pertamina sells Pertalite for IDR 7,650 per liter so every liter of Pertalite purchased by the public gets a subsidy of IDR 9,550 per liter from the government.

Meanwhile, for subsidized LPG, Nicke said that his party has not increased the price of non-subsidized LPG since 2007, so the price is still IDR 4,250 per kilogram. Currently, the market price of LPG is IDR 15,698 per kilogram, so the subsidy from the government is IDR 11,448 per kilogram.

The economic price of the Pertamax type of non-subsidized fuel product is IDR 17,950 per liter. Pertamina still fixes the price of Pertamax at IDR 12,500 per liter, while competing companies have set a product price of around IDR 17,000 per liter.

"We are still holding the price of Pertamax at IDR 12,500 per liter because we also understand that if Pertamax goes up this high, then a shift to Pertalite will occur. This condition will certainly increase the burden on the state", said Nicke.

Nicke admitted that his party will continue to monitor market price conditions and coordinate with the government to establish appropriate policies.

Nicke explained that the calculation of the economic price of BBM and LPG is by the formulation contained in the Regulation of the Minister of Energy and Mineral Resources.

According to her, this calculation formula is used by other competing companies in setting their fuel and LPG prices.